ORLANDO, Fla. – The Orlando housing market is continuing to break records, according to a report released Wednesday by the Orlando Regional Realtors Association, ORRA.
The May 2022 report showed the median home price in the Orlando area was $379,950, which is up nearly $10,000 from April and a record high for the fourth month in a row.
The Orlando market includes Orange, Osceola, Lake and Seminole counties.
While prices continue to soar, there are signs that balance in the market could be on the way.
[TRENDING: WATCH: Florida woman records giant alligator’s mating call in Apopka | ‘He didn’t eat for 4 days:’ Florida boy recovering from venomous snake bite | Become a News 6 Insider (it’s free!)]
According to the ORRA, inventory increased by 44.2% from April 2022 to May 2022.
Over 1,200 additional homes hit the market, which is the highest monthly inventory increase Orlando has ever seen.
“This new surge in inventory is a sign that the Orlando housing market is beginning to level out, which is good news for both buyers and sellers,” ORRA President Tansey Soderstrom said. “Buyers will find more homes to choose from and sellers are still getting top dollar as Orlando’s median home price continues to rise.”
The report also showed interest rates climbed from 4.9% in April to 5.3% in May. According to the ORRA, it’s the highest interest rate Orlando has seen since 2009.
Overall, sales in May increased by 3.8% in May. According to the report, homes spent an average of 21 days on the market, which is down 12.5% from April when the average was 24 days.
Even with the rise in inventory, Chris Creegan, the broker/owner of Creegan Group, said there is still not enough supply to meet demand.
“I think we’re still probably a third of where we need to be,” Creegan said. “I think with the amount of people transferring here it’s going to be tough to get our inventory back to normal.”
It will now also cost more to finance a home loan.
On Wednesday, the Federal Reserve announced it is raising interest rates by three-quarters of a percentage point. Mark Hamrick with Bankrate said more rate hikes are expected.
“This is the third interest rate hike of this cycle and it’s certainly not the last based on what we expect,” Hamrick said.
Hamrick said at the beginning of the year Bankrate was offering 30-year fixed mortgage rates around 3% and it has since nearly doubled.
He said this is contributing to the housing affordability crisis.
“People are now being hurt by not only the higher costs of financing, but the still high cost of homes and many people are being pinched by this,” Hamrick said.
Experts suggest if you’re entering the housing market, work with a realtor who knows the area, get pre-approved for a mortgage and shop around for the best interest rate.
The ORRA full market report for May can be found by clicking here.